The Flash Factor

[ChevroletRevived]

The Flash Factor
An GMI Commentary by ChevroletRevived
May 21, 2006
www.gminsidenews.com

As I read news of the success and sales of high end GMT-900 models, particularly the higher end variations, such as the Tahoe LTZ, something struck me. Why, really, are they doing so well when historically the sales have been at the low end of the spectrum? The answer is what I call the ''Flash Factor''

Differentiation Is Paramount

Getting out of the superb Tahoe LTZ (GMI Exclusive: 2007 Chevy Tahoe, February 2006) and then peeking in the lower trim levels of the model spectrum something occurred to me; after driving the LTZ, I wouldn't consider any other trim level. Why? The LTZ had an impressive array of features that provided a marked and noticeable difference from it's lower siblings. Navigation System, DVD player, Rear Backup Camera, just to name a few. Buyers want this difference when they buy top end models. Difference is a plus, a selling point. When buyers buy an LTZ; they don't just want to know it, they want everyone else to also! ''Ooh, wow, you got the loaded model!'' I notice this difference when driving the LTZ Tahoe vs. let's say, an LT. I don't find that same ''I've got to have it'' factor, for instance when driving a top level Malibu vs. the base model. Yes, more equipment is there, and often times, superior mechanicals. However, they are mostly things not easily identified by the mainstream consumer. GM has to give it's mid-size cars the equipment they need to compete, like navigation systems and other technology. GM needs to realize that this piece of truth, called ''The Flash Factor'', is what will equal more sales, better image and higher profits. When and if buyers can't find this in GM's top level models, they will either 1. Go to an automaker that CAN provide them with that differentiation or 2. Go to the money losing base model cars. I see signs of hope, like the 2008 CTS and Buick Enclave, and the GMT-900's. GM needs to embrace this and run with it. When GM does this, they will find that the cause of turning perceptions around will have a formidable new ally.

[mbukukanyau]

I agree.. It took a very long time for GM to embrase the Navigation.. they wasted soo much time with onstar.. while its good.. Navigation is what the sells the ricers

[paul3230]

Originally Posted by mbukukanyau

I agree.. It took a very long time for GM to embrase the Navigation.. they wasted soo much time with onstar.. while its good.. Navigation is what the sells the ricers

Plus it's just a good option to provide right? I mean, it's hard to buy a 30 something Buick/Cadillac when Acura, Lexus, etc. are offering nav, bluetooth and all these little goodies. Whether you use them or not, it's a nice to have that people use to compare how great their purchase was.

[mbukukanyau]

Originally Posted by paul3230

Plus it's just a good option to provide right? I mean, it's hard to buy a 30 something Buick/Cadillac when Acura, Lexus, etc. are offering nav, bluetooth and all these little goodies. Whether you use them or not, it's a nice to have that people use to compare how great their purchase was.

exactly. Is there a GM model with bluetooth? I have seen german cars intergrate the phone with their radios

[member12]

I still think GM needs to do something about its base models.

base GM trucks historically feature all the no-no's- cutouts for foglights without foglights in them, cheesey trim, ugly black plastic anything outside, pizza cutter wheels, extra low stance for that blown out shock look, while only making it available in two or three colors

This is probably one of the reason's Ford pickups outsell GM. Ford has better looking cheaper trim levels. Just because the LTZ Tahoe looks flashy, doesn't mean the LT and LS have to look like garbage.

[Hotspur]

Originally Posted by ChevroletRevived

Difference is a plus, a selling point. When buyers buy an LTZ; they don't just want to know it, they want everyone else to also! GM needs to realize that this piece of truth, called ''The Flash Factor'', is what will equal more sales, better image and higher profits.

This ain't necessarily so. Many high-end buyers DO NOT want their cars with a higher designation. BMW and Audi et. al. offer "badge delete" options. Many M5 owners remove the "M5" label. (Z06 owners do it too!) Owning a BMW or an Audi is glory enough. GM's problem is owning a Cadillac or expensive SUV is not glory enough. A V-series badge is necessary to get someone, ANYONE, to take notice. GM has got to rebuild its brands, as long and slow a process as that may be.

[TaHoE]

Originally Posted by mbukukanyau

exactly. Is there a GM model with bluetooth? I have seen german cars intergrate the phone with their radios

I believe the STS has bluetooth...I am pretty sure others do as well, but I am not sure which ones.

[TahoeMikeZ71]

Originally Posted by member12

I still think GM needs to do something about its base models.


Just because the LTZ Tahoe looks flashy, doesn't mean the LT and LS have to look like garbage.

I agree, the LS and LT1 look like crap. They could have goten better wheels and other things.

[mikesright]

Originally Posted by TAHOE LT

I agree, the LS and LT1 look like crap. They could have goten better wheels and other things.

I disagree. Not everyone likes 20' wheels and chrome everywhere. I would say GM has done a great job with the GMT-900's down the line and it shows. Sure, it's nice to have a good top-of-the-line model, but 60% or more goes to the middle or base models. Remember, these are families who are buying these in droves, and the way GM has catered to them has been effective. Say what you want with the Malibu or Cobalt, but those cars sell well, not because of style (except SS models) but because they are meeting the needs of families at a good price.

Sure, GM needs to make sure all of the cars in a lineup has a finished look. Its happened with nearly every product launch that there is significant progress in doing that. Customers are and will start to notice.

[rueben44]

I think his point was options and that is not limited to the wheels and their size. However people do like them bigger because little wheels look just that little and akward. Also I agree with him those trucks are selling "close to loaded" because loaded actually means you get something you can see and use every day not just a badge. When you start selling vehicles in the 40K range it is about options and wow factor not just value completely like in a 15K car. Two totally different kinds of shoppers!

[espo19047]

Originally Posted by member12

I still think GM needs to do something about its base models.

base GM trucks historically feature all the no-no's- cutouts for foglights without foglights in them, cheesey trim, ugly black plastic anything outside, pizza cutter wheels, extra low stance for that blown out shock look, while only making it available in two or three colors

This is probably one of the reason's Ford pickups outsell GM. Ford has better looking cheaper trim levels. Just because the LTZ Tahoe looks flashy, doesn't mean the LT and LS have to look like garbage.

The Ford out sells Chevy. not GMC and Chevy Combined. The Work truck Silverado is $2000 less the Fords lowest model. The Chevy Silverado W/T comes in 8 different colors not two or three...Why do people make things up? Do you believe your own BS?

[Cassie]

I think as far as exterior flash goes though... any really "out there" or extreme flash has a very limited lifespan. Extreme design tends to lend itself to looking good today, and looking awful in three years. I think a good example of this was Pontiac's awful cladding of the 80's-90's.

[rmodys]

I agree with you. There needs to be a significant difference between LS and LTZ models. That doesn't mean don't give the LS models any features at all either.

[asim]

Yes! GM needs to put more popular options on their other cars, like navigation system and etc.

[megan]

Just saw a LTZ Avalanche and a LT Avalanche at local dealer. About the only difference outside was the wheels. The LT's 17 in. wheels did not look much smaller than the LTZ's. Personally, I would just buy a set of bigger tires to give the LT a beefier look. The LTZ is nice, but give me a LT with cloth bucket seats and sunroof for about $37,500 and I will buy bigger tires. Not everyone wants to spend $47,000 on a TRUCK. I don't like leather, don't need navigation and can't see paying 8-10 thousand more for the same truck.
Maybe if I hit the lottery or inherit a few million I will buy a LTZ, but the LTZ is just a poor mans Escalade. The LT or LS are fine for the majority of truck buyers. The LT 1 1s $700 more than a LS. The LT 2 package is $2600 more than a LS, so the difference in price is not that much and the LT 2 includes power leather buckets, power pedals and rear ultrasonic parking assist among other things.